As society continues to advance, business changes and evolves. Old business models become ineffective, requiring executives to advance in order to achieve business goals and stay successful in their sectors. One significant area that has changed in the business world is in finance. Along with how finances work in the organization, financial leadership has evolved so that CFOs are no longer what they were.
Traditionally, the role of a CFO was to manage the financial records and reporting of the company and ensure statutory compliance. However, this role has evolved over the years. Today, CFOs use their financial knowledge to help guide the direction of the company through knowledge of the financial status of the organization.
In addition to financial knowledge and experience, today’s CFOs need executive-level skills, including leadership, knowledge of operations, ability to facilitate compliance with regulations, and a strong mind for strategy. The modern CFO is no longer only responsible for managing finances. Instead, the CFO must use financial knowledge as a foundation for working cooperatively with other executives to set goals and help the organization achieve them.
This role of the CFO is beneficial because it integrates a financial perspective throughout the organization. This perspective can help organizations make better decisions that will benefit the financial outcomes of the business rather than requiring the financial status of the business to fit whatever strategy is created. Modern tracking software and tools help facilitate decision-making by applying up-to-date financial information about the organization in meetings.
In order to continue to thrive in the future, it is recommended that CFOs:
- Focus on a breadth of financial knowledgeÂ
- Keep a global perspectiveÂ
- Take advantage of leadership and team-building opportunitiesÂ
- Utilize technology that drives productivityÂ
- Develop an effective and agile team that will be successful Â
As society continues to evolve, it is expected that financial leadership will, as well. CFOs will need to remain agile and forward-thinking in order to continue leading their teams — and businesses — to greater success.
